Thailand passes the draft decree on crypto regulation

Thai cabinet approves the draft decree with minimal changes from the initial variant proposed by Ministry of Finances, regulating ICOs and crypto taxation
30 March 2018   615

Government regulation has been a hot topic among the crypto community as of late. And Thai officials have been among the first few countries to announce plans to formalize the regulation and taxation on the crypto assets. And now they have passed the draft decree to regulate the cryptocurrencies and initial coin offerings.

The Thai cabinet has finally approved the draft of a royal decree to regulate cryptocurrencies and ICOs. Nothing is hugely different from the draft proposed by the Ministry of Finance earlier this month. The sole significant change from the precious version has been in the definition of the digital asset, which now reads “cryptocurrencies and digital tokens, removing other assets such as electronic data, as specified in the previous draft”, according to the Bangkok Post. The only thing left to do is to publish the decree in the Royal Gazette, after which the decree will become law and come into full effect.

Also, taxation rules have been finalized for the crypto assets. According to the Bangkok Post:

"Investors who make digital-asset related trades will be liable for a 7% value-added tax (VAT) payment, on top of the 15% withholding tax on capital gains and returns from such investments, when the new law is enforced…Retail investors will be exempt from paying VAT if they trade digital assets through exchanges."

And the ICOs now have to register in advance with the Thai SEC. All existing companies involved in the crypto market have to get licenses and report information to anti-money laundering office. The current ICOs have 90 days to report to SEC, while all the new offerings have to be registered before the actual start of the offerings.

Crypto Billionaire to Lost 5.5k BTC Due to Fraud

Thai scammers convinced 22 yo Finnish crypto billionaire to invest in their 'investment' scheme
13 August 2018   291

The 22-year-old cryptocurrency millionaire lost more than 5,500 bitcoins after taking part in the investment scheme in Thailand. The case attracted public attention because of the possible participation of a Thai actor. This is reported by Bangkok Post.

A group of scammers in June 2017 persuaded Finnish businessman Aarni Otawa Saarimaa to invest in several Thai securities, a casino in Macau and a crypto currency called Dragon Coin.

Scammers claimed that Dragon Coin could be used in Macau casinos. In addition, they brought Saarimaa to this casino to demonstrate the legitimacy of their project. Saarimaa transferred 5 564 BTC to fraudsters.

In January, without receiving any income for his investments, Saarimaa filed a complaint with the Crime Suppression Division's (CSD), along with his local business partner, who believed that this investment scheme was fraudulent.

CSD began to investigate the case and stated that the group made no investment for Saarimaa, instead transferring all the bitcoins to Thai baht and placing these funds on seven bank accounts.

Although it is not clear when exactly the scammers sold the bitcoins, CSD announced that they raised about 800 million baht or about 24 million dollars.

Then followed a months-long investigation, according to which CSD began to suspect that the Thai film actor Jiratkisit "Boom" Jaravijit also took part in the fraudulent scheme - he was arrested last Wednesday.

In addition, the CSD stated that it suspects the actor's brother, Princess Jaravijit, as the "instigator" of this entire scheme. He left Thailand, traveling to South Korea, and then to the United States. According to the Bangkok Post, CSD is currently working with the US to track him down.